As cell phones and smartphones become more expensive, the rise of cell phone insurance fraud becomes more prevalent even with the best cell phone insurance providers. Fraudsters are finding new ways to get money out of cell phone insurance providers. It’s important to know what kind of penalties there are for committing phone insurance fraud, so you can learn the legal manner of filing a claim and avoiding penalties.

KEY TAKEAWAYS:

  • Cell phone insurance providers are getting better at tracking fraudulent claims.
  • Phone insurance fraud can have serious, life-affecting penalties.
  • Always tell your phone insurance provider the truth about your claim.

Everything You Need to Know about Cell Phone Insurance Fraud

Cell phone insurance fraud happens when someone wrongfully falsely files a phone insurance claim to get the monetary payment or a new replacement phone. While renters insurance for smartphones isn’t as common, cell phone insurance fraud occurs more often when a person purchases the coverage.

Insider Tip

It’s important to know what kind of penalties there are for committing phone insurance fraud, so you can learn the legal manner of filing a claim and avoiding penalties.

Types of Cell Phone Insurance Fraud

There are many ways that people commit cell phone insurance fraud. Read through the following types of phone insurance fraud to learn more about filing claims the right way.

False Claim Fraud

When you file a phone insurance claim, it’s important to never lie about timeframes or how the damage occurred. If you lie to the phone insurance provider, you can be convicted of insurance fraud. False claims are one of the common types of fraud. For example, people damage their phones intentionally and then lie about it to get the insurance payout. Or people lie about when the damage occurred to avoid their policy’s timeframe limitations.

Insider Tip

It’s important to never lie about timeframes or how the damage occurred.

Multiple Policy Fraud

Some people try to take out multiple insurance policies on a single device. Then, they’ll make a claim with each insurance provider to receive multiple payouts. This method of fraud is very recognizable since many phone insurance providers are owned by the same parent company. For instance, an AT&T insurance claim will be run by Asurion, which is also the phone insurance provider for T-Mobile and Verizon phones.

Filing Claims on Other People’s Policies

Some fraudsters even go as far as to steal other people’s policy information and make false claims on their policies. This allows them to receive the payouts or replacement devices and leave the real policy owners with the repercussions of never sending in their devices.

Warning

If you lie to the phone insurance provider, you can be convicted of insurance fraud.

Penalties for Committing Cell Phone Insurance Fraud

If you commit cell phone insurance fraud, you can potentially receive some very strict penalties that will stay on your record forever.

Criminal Charges

The criminal charges for committing insurance fraud can vary depending on your home state, but you can expect to receive at least a misdemeanor charge if convicted. The more money involved in the fraud case, the heavier the charges may be, including and up to felony charges.

Fines

Most cell phone insurance fraud cases have some kind of fine associated with them. Again, the amount of these fines can vary from state to state and can increase depending on the amount of money involved in the fraud.

F.A.Q.

Do you go to jail for insurance fraud?

Yes, some states do include jail time or probation as penalties for phone insurance fraud.


Do insurance companies check IMEI numbers?

Yes, most phone insurance companies will check your phone’s IMEI number to make sure you’re sending in the correct device.


What’s the sentence for insurance fraud?

Actual sentencing and penalties can vary from state to state, but you can expect jail time, criminal charges, and fines.


What happens if you get caught lying to your insurance company?

If you lie to your phone insurance company, you can expect to face insurance fraud charges and penalties.


STAT: Upwards of 40% of all cell phone insurance claims are fraudulent. (source)

Ryan Hansen

When he’s not exploring everything Oregon has to offer with his family, Ryan Hansen is probably writing. He loves writing about anything he can get his hands on, and is always anxious for the next adventure.

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